CHAPTER 1. DEFINITIONS
IC 6-3
ARTICLE 3. OTHER STATE INCOME TAXES
IC 6-3-1
Chapter 1. Definitions
IC 6-3-1-1
Short title
Sec. 1. IC 6-3-1 through IC 6-3-7 shall be known and may be cited
as the Adjusted Gross Income Tax Act of 1963.
(Formerly: Acts 1963(ss), c.32, s.101.) As amended by P.L.2-1988,
SEC.3.
IC 6-3-1-2
Construction of definitions
Sec. 2. Except where the context otherwise requires, the
definitions given in this article govern the construction of this article.
(Formerly: Acts 1963(ss), c.32, s.102.) As amended by P.L.2-1988,
SEC.4.
IC 6-3-1-2.5
"Armed forces of the United States" defined
Sec. 2.5. "Armed forces of the United States" has the meaning set
forth in IC 5-9-4-3.
As added by P.L.144-2007, SEC.1.
IC 6-3-1-2.7
"National Guard" defined
Sec. 2.7. "National Guard" has the meaning set forth in
IC 5-9-4-4.
As added by P.L.144-2007, SEC.2.
IC 6-3-1-3
Repealed
(Repealed by Acts 1980, P.L.54, SEC.9.)
IC 6-3-1-3.1
Repealed
(Repealed by Acts 1979, P.L.70, SEC.2.)
IC 6-3-1-3.5
"Adjusted gross income" defined
Sec. 3.5. When used in this article, the term "adjusted gross
income" shall mean the following:
(a) In the case of all individuals, "adjusted gross income" (as
defined in Section 62 of the Internal Revenue Code), modified as
follows:
(1) Subtract income that is exempt from taxation under this
article by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction or deductions
allowed or allowable pursuant to Section 62 of the Internal
Revenue Code for taxes based on or measured by income and
levied at the state level by any state of the United States.
(3) Subtract one thousand dollars ($1,000), or in the case of a
joint return filed by a husband and wife, subtract for each
spouse one thousand dollars ($1,000).
(4) Subtract one thousand dollars ($1,000) for:
(A) each of the exemptions provided by Section 151(c) of
the Internal Revenue Code;
(B) each additional amount allowable under Section 63(f) of
the Internal Revenue Code; and
(C) the spouse of the taxpayer if a separate return is made by
the taxpayer and if the spouse, for the calendar year in which
the taxable year of the taxpayer begins, has no gross income
and is not the dependent of another taxpayer.
(5) Subtract:
(A) for taxable years beginning after December 31, 2004,
one thousand five hundred dollars ($1,500) for each of the
exemptions allowed under Section 151(c)(1)(B) of the
Internal Revenue Code (as effective January 1, 2004); and
(B) five hundred dollars ($500) for each additional amount
allowable under Section 63(f)(1) of the Internal Revenue
Code if the adjusted gross income of the taxpayer, or the
taxpayer and the taxpayer's spouse in the case of a joint
return, is less than forty thousand dollars ($40,000).
This amount is in addition to the amount subtracted under
subdivision (4).
(6) Subtract an amount equal to the lesser of:
(A) that part of the individual's adjusted gross income (as
defined in Section 62 of the Internal Revenue Code) for that
taxable year that is subject to a tax that is imposed by a
political subdivision of another state and that is imposed on
or measured by income; or
(B) two thousand dollars ($2,000).
(7) Add an amount equal to the total capital gain portion of a
lump sum distribution (as defined in Section 402(e)(4)(D) of the
Internal Revenue Code) if the lump sum distribution is received
by the individual during the taxable year and if the capital gain
portion of the distribution is taxed in the manner provided in
Section 402 of the Internal Revenue Code.
(8) Subtract any amounts included in federal adjusted gross
income under Section 111 of the Internal Revenue Code as a
recovery of items previously deducted as an itemized deduction
from adjusted gross income.
(9) Subtract any amounts included in federal adjusted gross
income under the Internal Revenue Code which amounts were
received by the individual as supplemental railroad retirement
annuities under 45 U.S.C. 231 and which are not deductible
under subdivision (1).
(10) Add an amount equal to the deduction allowed under
Section 221 of the Internal Revenue Code for married couples
filing joint returns if the taxable year began before January 1,
1987.
(11) Add an amount equal to the interest excluded from federal
gross income by the individual for the taxable year under
Section 128 of the Internal Revenue Code if the taxable year
began before January 1, 1985.
(12) Subtract an amount equal to the amount of federal Social
Security and Railroad Retirement benefits included in a
taxpayer's federal gross income by Section 86 of the Internal
Revenue Code.
(13) In the case of a nonresident taxpayer or a resident taxpayer
residing in Indiana for a period of less than the taxpayer's entire
taxable year, the total amount of the deductions allowed
pursuant to subdivisions (3), (4), (5), and (6) shall be reduced
to an amount which bears the same ratio to the total as the
taxpayer's income taxable in Indiana bears to the taxpayer's total
income.
(14) In the case of an individual who is a recipient of assistance
under IC 12-10-6-1, IC 12-10-6-2.1, IC 12-15-2-2, or
IC 12-15-7, subtract an amount equal to that portion of the
individual's adjusted gross income with respect to which the
individual is not allowed under federal law to retain an amount
to pay state and local income taxes.
(15) In the case of an eligible individual, subtract the amount of
a Holocaust victim's settlement payment included in the
individual's federal adjusted gross income.
(16) For taxable years beginning after December 31, 1999,
subtract an amount equal to the portion of any premiums paid
during the taxable year by the taxpayer for a qualified long term
care policy (as defined in IC 12-15-39.6-5) for the taxpayer or
the taxpayer's spouse, or both.
(17) Subtract an amount equal to the lesser of:
(A) for a taxable year:
(i) including any part of 2004, the amount determined
under subsection (f); and
(ii) beginning after December 31, 2004, two thousand five
hundred dollars ($2,500); or
(B) the amount of property taxes that are paid during the
taxable year in Indiana by the individual on the individual's
principal place of residence.
(18) Subtract an amount equal to the amount of a September 11
terrorist attack settlement payment included in the individual's
federal adjusted gross income.
(19) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which
bonus depreciation was allowed in the current taxable year or
in an earlier taxable year equal to the amount of adjusted gross
income that would have been computed had an election not
been made under Section 168(k) of the Internal Revenue Code
to apply bonus depreciation to the property in the year that it
was placed in service.
(20) Add an amount equal to any deduction allowed under
Section 172 of the Internal Revenue Code.
(21) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property
(as defined in Section 179 of the Internal Revenue Code) in
service in the current taxable year or in an earlier taxable year
equal to the amount of adjusted gross income that would have
been computed had an election for federal income tax purposes
not been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five
thousand dollars ($25,000).
(22) Add an amount equal to the amount that a taxpayer claimed
as a deduction for domestic production activities for the taxable
year under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(23) Subtract an amount equal to the amount of the taxpayer's
qualified military income that was not excluded from the
taxpayer's gross income for federal income tax purposes under
Section 112 of the Internal Revenue Code.
(24) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the individual's federal adjusted gross
income under the Internal Revenue Code.
(25) Subtract any amount of a credit (including an advance
refund of the credit) that is provided to an individual under 26
U.S.C. 6428 (federal Economic Stimulus Act of 2008) and
included in the individual's federal adjusted gross income.
(26) Add any amount of unemployment compensation excluded
from federal gross income, as defined in Section 61 of the
Internal Revenue Code, under Section 85(c) of the Internal
Revenue Code.
(27) Add the amount excluded from gross income under Section
108(a)(1)(e) of the Internal Revenue Code for the discharge of
debt on a qualified principal residence.
(28) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from
business indebtedness discharged in connection with the
reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code. Subtract the amount
necessary from the adjusted gross income of any taxpayer that
added an amount to adjusted gross income in a previous year to
offset the amount included in federal gross income as a result
of the deferral of income arising from business indebtedness
discharged in connection with the reacquisition after December
31, 2008, and before January 1, 2011, of an applicable debt
instrument, as provided in Section 108(i) of the Internal
Revenue Code.
(29) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed qualified restaurant property
in service during the taxable year and that was classified as
15-year property under Section 168(e)(3)(E)(v) of the Internal
Revenue Code equal to the amount of adjusted gross income
that would have been computed had the classification not
applied to the property in the year that it was placed in service.
(30) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed qualified retail improvement
property in service during the taxable year and that was
classified as 15-year property under Section 168(e)(3)(E)(ix) of
the Internal Revenue Code equal to the amount of adjusted
gross income that would have been computed had the
classification not applied to the property in the year that it was
placed in service.
(31) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that claimed the special allowance
for qualified disaster assistance property under Section 168(n)
of the Internal Revenue Code equal to the amount of adjusted
gross income that would have been computed had the special
allowance not been claimed for the property.
(32) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under
Section 179C of the Internal Revenue Code to expense costs for
qualified refinery property equal to the amount of adjusted
gross income that would have been computed had an election
for federal income tax purposes not been made for the year.
(33) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under
Section 181 of the Internal Revenue Code to expense costs for
a qualified film or television production equal to the amount of
adjusted gross income that would have been computed had an
election for federal income tax purposes not been made for the
year.
(34) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that treated a loss from the sale or
exchange of preferred stock in:
(A) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter
Act (12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation,
established under the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency
Economic Stabilization Act of 2008 in the current taxable year
or in an earlier taxable year equal to the amount of adjusted
gross income that would have been computed had the loss not
been treated as an ordinary loss.
(b) In the case of corporations, the same as "taxable income" (as
defined in Section 63 of the Internal Revenue Code) adjusted as
follows:
(1) Subtract income that is exempt from taxation under this
article by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction or deductions
allowed or allowable pursuant to Section 170 of the Internal
Revenue Code.
(3) Add an amount equal to any deduction or deductions
allowed or allowable pursuant to Section 63 of the Internal
Revenue Code for taxes based on or measured by income and
levied at the state level by any state of the United States.
(4) Subtract an amount equal to the amount included in the
corporation's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which
bonus depreciation was allowed in the current taxable year or
in an earlier taxable year equal to the amount of adjusted gross
income that would have been computed had an election not
been made under Section 168(k) of the Internal Revenue Code
to apply bonus depreciation to the property in the year that it
was placed in service.
(6) Add an amount equal to any deduction allowed under
Section 172 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property
(as defined in Section 179 of the Internal Revenue Code) in
service in the current taxable year or in an earlier taxable year
equal to the amount of adjusted gross income that would have
been computed had an election for federal income tax purposes
not been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five
thousand dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed
as a deduction for domestic production activities for the taxable
year under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(9) Add to the extent required by IC 6-3-2-20 the amount of
intangible expenses (as defined in IC 6-3-2-20) and any directly
related intangible interest expenses (as defined in IC 6-3-2-20)
for the taxable year that reduced the corporation's taxable
income (as defined in Section 63 of the Internal Revenue Code)
for federal income tax purposes.
(10) Add an amount equal to any deduction for dividends paid
(as defined in Section 561 of the Internal Revenue Code) to
shareholders of a captive real estate investment trust (as defined
in section 34.5 of this chapter).
(11) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the corporation's taxable income under the
Internal Revenue Code.
(12) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from
business indebtedness discharged in connection with the
reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code. Subtract from the adjusted
gross income of any taxpayer that added an amount to adjusted
gross income in a previous year the amount necessary to offset
the amount included in federal gross income as a result of the
deferral of income arising from business indebtedness
discharged in connection with the reacquisition after December
31, 2008, and before January 1, 2011, of an applicable debt
instrument, as provided in Section 108(i) of the Internal
Revenue Code.
(13) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed qualified restaurant property
in service during the taxable year and that was classified as
15-year property under Section 168(e)(3)(E)(v) of the Internal
Revenue Code equal to the amount of adjusted gross income
that would have been computed had the classification not
applied to the property in the year that it was placed in service.
(14) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed qualified retail improvement
property in service during the taxable year and that was
classified as 15-year property under Section 168(e)(3)(E)(ix) of
the Internal Revenue Code equal to the amount of adjusted
gross income that would have been computed had the
classification not applied to the property in the year that it was
placed in service.
(15) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that claimed the special allowance
for qualified disaster assistance property under Section 168(n)
of the Internal Revenue Code equal to the amount of adjusted
gross income that would have been computed had the special
allowance not been claimed for the property.
(16) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under
Section 179C of the Internal Revenue Code to expense costs for
qualified refinery property equal to the amount of adjusted
gross income that would have been computed had an election
for federal income tax purposes not been made for the year.
(17) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under
Section 181 of the Internal Revenue Code to expense costs for
a qualified film or television production equal to the amount of
adjusted gross income that would have been computed had an
election for federal income tax purposes not been made for the
year.
(18) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that treated a loss from the sale or
exchange of preferred stock in:
(A) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter
Act (12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation,
established under the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency
Economic Stabilization Act of 2008 in the current taxable year
or in an earlier taxable year equal to the amount of adjusted
gross income that would have been computed had the loss not
been treated as an ordinary loss.
(c) In the case of life insurance companies (as defined in Section
816(a) of the Internal Revenue Code) that are organized under
Indiana law, the same as "life insurance company taxable income"
(as defined in Section 801 of the Internal Revenue Code), adjusted
as follows:
(1) Subtract income that is exempt from taxation under this
article by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction allowed or allowable
under Section 170 of the Internal Revenue Code.
(3) Add an amount equal to a deduction allowed or allowable
under Section 805 or Section 831(c) of the Internal Revenue
Code for taxes based on or measured by income and levied at
the state level by any state.
(4) Subtract an amount equal to the amount included in the
company's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which
bonus depreciation was allowed in the current taxable year or
in an earlier taxable year equal to the amount of adjusted gross
income that would have been computed had an election not
been made under Section 168(k) of the Internal Revenue Code
to apply bonus depreciation to the property in the year that it
was placed in service.
(6) Add an amount equal to any deduction allowed under
Section 172 or Section 810 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property
(as defined in Section 179 of the Internal Revenue Code) in
service in the current taxable year or in an earlier taxable year
equal to the amount of adjusted gross income that would have
been computed had an election for federal income tax purposes
not been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five
thousand dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed
as a deduction for domestic production activities for the taxable
year under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(9) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the insurance company's taxable income
under the Internal Revenue Code.
(10) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from
business indebtedness discharged in connection with the
reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code. Subtract from the adjusted
gross income of any taxpayer that added an amount to adjusted
gross income in a previous year the amount necessary to offset
the amount included in federal gross income as a result of the
deferral of income arising from business indebtedness
discharged in connection with the reacquisition after December
31, 2008, and before January 1, 2011, of an applicable debt
instrument, as provided in Section 108(i) of the Internal
Revenue Code.
(11) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed qualified restaurant property
in service during the taxable year and that was classified as
15-year property under Section 168(e)(3)(E)(v) of the Internal
Revenue Code equal to the amount of adjusted gross income
that would have been computed had the classification not
applied to the property in the year that it was placed in service.
(12) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed qualified retail improvement
property in service during the taxable year and that was
classified as 15-year property under Section 168(e)(3)(E)(ix) of
the Internal Revenue Code equal to the amount of adjusted
gross income that would have been computed had the
classification not applied to the property in the year that it was
placed in service.
(13) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that claimed the special allowance
for qualified disaster assistance property under Section 168(n)
of the Internal Revenue Code equal to the amount of adjusted
gross income that would have been computed had the special
allowance not been claimed for the property.
(14) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under
Section 179C of the Internal Revenue Code to expense costs for
qualified refinery property equal to the amount of adjusted
gross income that would have been computed had an election
for federal income tax purposes not been made for the year.
(15) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under
Section 181 of the Internal Revenue Code to expense costs for
a qualified film or television production equal to the amount of
adjusted gross income that would have been computed had an
election for federal income tax purposes not been made for the
year.
(16) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that treated a loss from the sale or
exchange of preferred stock in:
(A) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter
Act (12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation,
established under the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency
Economic Stabilization Act of 2008 in the current taxable year
or in an earlier taxable year equal to the amount of adjusted
gross income that would have been computed had the loss not
been treated as an ordinary loss.
(17) Add an amount equal to any exempt insurance income
under Section 953(e) of the Internal Revenue Code that is active
financing income under Subpart F of Subtitle A, Chapter 1,
Subchapter N of the Internal Revenue Code.
(d) In the case of insurance companies subject to tax under
Section 831 of the Internal Revenue Code and organized under
Indiana law, the same as "taxable income" (as defined in Section 832
of the Internal Revenue Code), adjusted as follows:
(1) Subtract income that is exempt from taxation under this
article by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction allowed or allowable
under Section 170 of the Internal Revenue Code.
(3) Add an amount equal to a deduction allowed or allowable
under Section 805 or Section 831(c) of the Internal Revenue
Code for taxes based on or measured by income and levied at
the state level by any state.
(4) Subtract an amount equal to the amount included in the
company's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which
bonus depreciation was allowed in the current taxable year or
in an earlier taxable year equal to the amount of adjusted gross
income that would have been computed had an election not
been made under Section 168(k) of the Internal Revenue Code
to apply bonus depreciation to the property in the year that it
was placed in service.
(6) Add an amount equal to any deduction allowed under
Section 172 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property
(as defined in Section 179 of the Internal Revenue Code) in
service in the current taxable year or in an earlier taxable year
equal to the amount of adjusted gross income that would have
been computed had an election for federal income tax purposes
not been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five
thousand dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed
as a deduction for domestic production activities for the taxable
year under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(9) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the insurance company's taxable income
under the Internal Revenue Code.
(10) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from
business indebtedness discharged in connection with the
reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code. Subtract from the adjusted
gross income of any taxpayer that added an amount to adjusted
gross income in a previous year the amount necessary to offset
the amount included in federal gross income as a result of the
deferral of income arising from business indebtedness
discharged in connection with the reacquisition after December
31, 2008, and before January 1, 2011, of an applicable debt
instrument, as provided in Section 108(i) of the Internal
Revenue Code.
(11) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed qualified restaurant property
in service during the taxable year and that was classified as
15-year property under Section 168(e)(3)(E)(v) of the Internal
Revenue Code equal to the amount of adjusted gross income
that would have been computed had the classification not
applied to the property in the year that it was placed in service.
(12) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed qualified retail improvement
property in service during the taxable year and that was
classified as 15-year property under Section 168(e)(3)(E)(ix) of
the Internal Revenue Code equal to the amount of adjusted
gross income that would have been computed had the
classification not applied to the property in the year that it was
placed in service.
(13) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that claimed the special allowance
for qualified disaster assistance property under Section 168(n)
of the Internal Revenue Code equal to the amount of adjusted
gross income that would have been computed had the special
allowance not been claimed for the property.
(14) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under
Section 179C of the Internal Revenue Code to expense costs for
qualified refinery property equal to the amount of adjusted
gross income that would have been computed had an election
for federal income tax purposes not been made for the year.
(15) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under
Section 181 of the Internal Revenue Code to expense costs for
a qualified film or television production equal to the amount of
adjusted gross income that would have been computed had an
election for federal income tax purposes not been made for the
year.
(16) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that treated a loss from the sale or
exchange of preferred stock in:
(A) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter
Act (12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation,
established under the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency
Economic Stabilization Act of 2008 in the current taxable year
or in an earlier taxable year equal to the amount of adjusted
gross income that would have been computed had the loss not
been treated as an ordinary loss.
(17) Add an amount equal to any exempt insurance income
under Section 953(e) of the Internal Revenue Code that is active
financing income under Subpart F of Subtitle A, Chapter 1,
Subchapter N of the Internal Revenue Code.
(e) In the case of trusts and estates, "taxable income" (as defined
for trusts and estates in Section 641(b) of the Internal Revenue Code)
adjusted as follows:
(1) Subtract income that is exempt from taxation under this
article by the Constitution and statutes of the United States.
(2) Subtract an amount equal to the amount of a September 11
terrorist attack settlement payment included in the federal
adjusted gross income of the estate of a victim of the September
11 terrorist attack or a trust to the extent the trust benefits a
victim of the September 11 terrorist attack.
(3) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which
bonus depreciation was allowed in the current taxable year or
in an earlier taxable year equal to the amount of adjusted gross
income that would have been computed had an election not
been made under Section 168(k) of the Internal Revenue Code
to apply bonus depreciation to the property in the year that it
was placed in service.
(4) Add an amount equal to any deduction allowed under
Section 172 of the Internal Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property
(as defined in Section 179 of the Internal Revenue Code) in
service in the current taxable year or in an earlier taxable year
equal to the amount of adjusted gross income that would have
been computed had an election for federal income tax purposes
not been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five
thousand dollars ($25,000).
(6) Add an amount equal to the amount that a taxpayer claimed
as a deduction for domestic production activities for the taxable
year under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(7) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the taxpayer's taxable income under the
Internal Revenue Code.
(8) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from
business indebtedness discharged in connection with the
reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code. Subtract from the adjusted
gross income of any taxpayer that added an amount to adjusted
gross income in a previous year the amount necessary to offset
the amount included in federal gross income as a result of the
deferral of income arising from business indebtedness
discharged in connection with the reacquisition after December
31, 2008, and before January 1, 2011, of an applicable debt
instrument, as provided in Section 108(i) of the Internal
Revenue Code.
(9) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed qualified restaurant property
in service during the taxable year and that was classified as
15-year property under Section 168(e)(3)(E)(v) of the Internal
Revenue Code equal to the amount of adjusted gross income
that would have been computed had the classification not
applied to the property in the year that it was placed in service.
(10) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed qualified retail improvement
property in service during the taxable year and that was
classified as 15-year property under Section 168(e)(3)(E)(ix) of
the Internal Revenue Code equal to the amount of adjusted
gross income that would have been computed had the
classification not applied to the property in the year that it was
placed in service.
(11) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that claimed the special allowance
for qualified disaster assistance property under Section 168(n)
of the Internal Revenue Code equal to the amount of adjusted
gross income that would have been computed had the special
allowance not been claimed for the property.
(12) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under
Section 179C of the Internal Revenue Code to expense costs for
qualified refinery property equal to the amount of adjusted
gross income that would have been computed had an election
for federal income tax purposes not been made for the year.
(13) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under
Section 181 of the Internal Revenue Code to expense costs for
a qualified film or television production equal to the amount of
adjusted gross income that would have been computed had an
election for federal income tax purposes not been made for the
year.
(14) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that treated a loss from the sale or
exchange of preferred stock in:
(A) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter
Act (12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation,
established under the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency
Economic Stabilization Act of 2008 in the current taxable year
or in an earlier taxable year equal to the amount of adjusted
gross income that would have been computed had the loss not
been treated as an ordinary loss.
(15) Add the amount excluded from gross income under Section
108(a)(1)(e) of the Internal Revenue Code for the discharge of
debt on a qualified principal residence.
(f) This subsection applies only to the extent that an individual
paid property taxes in 2004 that were imposed for the March 1, 2002,
assessment date or the January 15, 2003, assessment date. The
maximum amount of the deduction under subsection (a)(17) is equal
to the amount determined under STEP FIVE of the following
formula:
STEP ONE: Determine the amount of property taxes that the
taxpayer paid after December 31, 2003, in the taxable year for
property taxes imposed for the March 1, 2002, assessment date
and the January 15, 2003, assessment date.
STEP TWO: Determine the amount of property taxes that the
taxpayer paid in the taxable year for the March 1, 2003,
assessment date and the January 15, 2004, assessment date.
STEP THREE: Determine the result of the STEP ONE amount
divided by the STEP TWO amount.
STEP FOUR: Multiply the STEP THREE amount by two
thousand five hundred dollars ($2,500).
STEP FIVE: Determine the sum of the STEP FOUR amount
and two thousand five hundred dollars ($2,500).
(Formerly: Acts 1971, P.L.64, SEC.1; Acts 1973, P.L.49, SEC.1.) As
amended by Acts 1977, P.L.77, SEC.1; Acts 1977(ss), P.L.4, SEC.8;
Acts 1978, P.L.42, SEC.1; Acts 1978, P.L.43, SEC.1; Acts 1980,
P.L.54, SEC.1; Acts 1981, P.L.82, SEC.1; Acts 1982, P.L.52, SEC.1;
P.L.82-1983, SEC.1; P.L.49-1984, SEC.1; P.L.73-1985, SEC.1;
P.L.2-1987, SEC.15; P.L.91-1987, SEC.2; P.L.383-1987(ss), SEC.3;
P.L.88-1989, SEC.1; P.L.1-1990, SEC.75; P.L.2-1992, SEC.68;
P.L.57-1997, SEC.2; P.L.119-1998, SEC.3; P.L.128-1999, SEC.1;
P.L.238-1999, SEC.1; P.L.249-1999, SEC.1; P.L.257-1999, SEC.1;
P.L.273-1999, SEC.51; P.L.14-2000, SEC.16; P.L.8-2002, SEC.3;
P.L.192-2002(ss), SEC.67; P.L.105-2003, SEC.1; P.L.1-2004,
SEC.49; P.L.81-2004, SEC.9; P.L.246-2005, SEC.69; P.L.184-2006,
SEC.3; P.L.162-2006, SEC.24; P.L.1-2007, SEC.53; P.L.144-2007,
SEC.3; P.L.211-2007, SEC.19; P.L.223-2007, SEC.1; P.L.131-2008,
SEC.11; P.L.3-2008, SEC.60; P.L.1-2009, SEC.49;
P.L.182-2009(ss), SEC.186.
IC 6-3-1-3.7
Deduction for certain property taxes paid in 2009
Sec. 3.7. (a) This section applies only to an individual who in
2009 paid property taxes that:
(1) were imposed on the individual's principal place of
residence for the March 1, 2007, assessment date or the January
15, 2008, assessment date;
(2) are due after December 31, 2008; and
(3) are paid on or before the due date for the property taxes.
(b) An individual described in subsection (a) is entitled to a
deduction from adjusted gross income for a taxable year beginning
after December 31, 2008, and before January 1, 2010, in an amount
equal to the amount determined in the following STEPS:
STEP ONE: Determine the lesser of:
(A) two thousand five hundred dollars ($2,500); or
(B) the total amount of property taxes imposed on the
individual's principal place of residence for the March 1,
2007, assessment date or the January 15, 2008, assessment
date and paid in 2008 or 2009.
STEP TWO: Determine the greater of zero (0) or the result of:
(A) the STEP ONE result; minus
(B) the total amount of property taxes that:
(i) were imposed on the individual's principal place of
residence for the March 1, 2007, assessment date or the
January 15, 2008, assessment date;
(ii) were paid in 2008; and
(iii) were deducted from adjusted gross income under
section 3.5(a)(17) of this chapter by the individual on the
individual's state income tax return for a taxable year
beginning before January 1, 2009.
(c) The deduction under this section is in addition to any
deduction that an individual is otherwise entitled to claim under
section 3.5(a)(17) of this chapter. However, an individual may not
deduct under section 3.5(a)(17) of this chapter any property taxes
deducted under this section.
(d) This section expires January 1, 2014.
As added by P.L.182-2009(ss), SEC.187.
IC 6-3-1-4
"Department" defined
Sec. 4. The term "department" means the Indiana department of
state revenue.
(Formerly: Acts 1963(ss), c.32, s.104.)
IC 6-3-1-5
"Employer" defined
Sec. 5. The term "employer" means "employer" as defined in
section 3401(d) of the Internal Revenue Code.
(Formerly: Acts 1963(ss), c.32, s.105.)
IC 6-3-1-6
"Employee" defined
Sec. 6. The term "employee" means "employee" as defined in
section 3401(c) of the Internal Revenue Code.
(Formerly: Acts 1963(ss), c.32, s.106.)
IC 6-3-1-7
"Fiduciary" defined
Sec. 7. "Fiduciary" means any guardian, trustee, executor,
administrator, receiver, conservator, or any person, whether
individual or corporate, acting in any fiduciary capacity for any
individual, trust, guardian, or estate.
(Formerly: Acts 1963(ss), c.32, s.107.) As amended by P.L.33-1989,
SEC.4.
IC 6-3-1-8
"Gross income" defined
Sec. 8. The term "gross income" shall mean gross income as
defined by section 61(a) of the Internal Revenue Code.
(Formerly: Acts 1963(ss), c.32, s.108.)
IC 6-3-1-9
"Individual" defined
Sec. 9. The term "individual" means a natural person, whether
married or unmarried, adult or minor.
(Formerly: Acts 1963(ss), c.32, s.109.)
IC 6-3-1-10
"Corporation" defined
Sec. 10. As used in this article, "corporation" includes all
corporations, associations, real estate investment trusts (as defined
in the Internal Revenue Code), joint stock companies, whether
organized for profit or not-for-profit, any receiver, trustee or
conservator thereof, business trusts, Massachusetts trusts, any
proprietorship or partnership taxable under Section 1361 of the
Internal Revenue Code, and any publicly traded partnership that is
treated as a corporation for federal income tax purposes under
Section 7704 of the Internal Revenue Code. The term includes life
insurance companies (as defined in Section 816(a) of the Internal
Revenue Code) and insurance companies subject to tax under Section
831 of the Internal Revenue Code.
(Formerly: Acts 1963(ss), c.32, s.110; Acts 1965, c.233, s.2; Acts
1973, P.L.49, SEC.2.) As amended by P.L.2-1987, SEC.16;
P.L.63-1988, SEC.4; P.L.192-2002(ss), SEC.68.
IC 6-3-1-11
"Internal Revenue Code" defined
Sec. 11. (a) The term "Internal Revenue Code" means the Internal
Revenue Code of 1986 of the United States as amended and in effect
on January 1, 2010.
(b) Whenever the Internal Revenue Code is mentioned in this
article, the particular provisions that are referred to, together with all
the other provisions of the Internal Revenue Code in effect on
January 1, 2010, that pertain to the provisions specifically
mentioned, shall be regarded as incorporated in this article by
reference and have the same force and effect as though fully set forth
in this article. To the extent the provisions apply to this article,
regulations adopted under Section 7805(a) of the Internal Revenue
Code and in effect on January 1, 2010, shall be regarded as rules
adopted by the department under this article, unless the department
adopts specific rules that supersede the regulation.
(c) An amendment to the Internal Revenue Code made by an act
passed by Congress before January 1, 2010, that is effective for any
taxable year that began before January 1, 2010, and that affects:
(1) individual adjusted gross income (as defined in Section 62
of the Internal Revenue Code);
(2) corporate taxable income (as defined in Section 63 of the
Internal Revenue Code);
(3) trust and estate taxable income (as defined in Section 641(b)
of the Internal Revenue Code);
(4) life insurance company taxable income (as defined in
Section 801(b) of the Internal Revenue Code);
(5) mutual insurance company taxable income (as defined in
Section 821(b) of the Internal Revenue Code); or
(6) taxable income (as defined in Section 832 of the Internal
Revenue Code);
is also effective for that same taxable year for purposes of
determining adjusted gross income under section 3.5 of this chapter.
(Formerly: Acts 1963(ss), c.32, s.111; Acts 1965, c.233, s.3; Acts
1967, c.345, s.2; Acts 1969, c.326, s.2; Acts 1971, P.L.64, SEC.2;
Acts 1973, P.L.49, SEC.3; Acts 1975, P.L.60, SEC.1.) As amended by
Acts 1977, P.L.78, SEC.1; Acts 1978, P.L.44, SEC.1; Acts 1979,
P.L.67, SEC.1; Acts 1980, P.L.55, SEC.1; Acts 1981, P.L.82, SEC.2;
Acts 1982, P.L.52, SEC.2; P.L.82-1983, SEC.2; P.L.49-1984, SEC.2;
P.L.74-1985, SEC.1; P.L.71-1986, SEC.1; P.L.2-1987, SEC.17;
P.L.63-1988, SEC.5; P.L.89-1989, SEC.1; P.L.35-1990, SEC.11;
P.L.64-1991, SEC.1; P.L.43-1992, SEC.9; P.L.74-1993, SEC.1;
P.L.19-1994, SEC.7; P.L.85-1995, SEC.9; P.L.60-1997, SEC.2;
P.L.119-1998, SEC.4; P.L.2-2000, SEC.1; P.L.9-2001, SEC.1;
P.L.177-2002, SEC.11; P.L.192-2002(ss), SEC.69; P.L.105-2003,
SEC.2; P.L.246-2005, SEC.70; P.L.184-2006, SEC.4; P.L.234-2007,
SEC.41; P.L.131-2008, SEC.12; P.L.182-2009(ss), SEC.188;
P.L.113-2010, SEC.54.
IC 6-3-1-12
"Resident" defined
Sec. 12. The term "resident" includes (a) any individual who was
domiciled in this state during the taxable year, or (b) any individual
who maintains a permanent place of residence in this state and
spends more than one hundred eighty-three (183) days of the taxable
year within this state, or (c) any estate of a deceased person defined
in (a) or (b), or (d) any trust which has a situs within this state.
(Formerly: Acts 1963(ss), c.32, s.112.)
IC 6-3-1-13
"Nonresident" defined
Sec. 13. The term "nonresident" means any person who is not a
resident of Indiana.
(Formerly: Acts 1963(ss), c.32, s.113.)
IC 6-3-1-14
"Person" defined
Sec. 14. The term "person" means an individual, trust or estate:
Provided, That no corporation shall be considered to be a person.
(Formerly: Acts 1963(ss), c.32, s.114.)
IC 6-3-1-15
"Taxpayer" defined
Sec. 15. The term "taxpayer" means any person or any corporation
subject to taxation under this article.
(Formerly: Acts 1963(ss), c.32, s.115.) As amended by P.L.2-1988,
SEC.5.
IC 6-3-1-16
"Taxable year" defined
Sec. 16. The term "taxable year" with respect to any taxpayer
means the taxable year of such taxpayer as shown on his return
required to be filed or filed pursuant to the Internal Revenue Code.
Where a taxpayer does not file a return pursuant to the Internal
Revenue Code, his taxable year shall be the calendar year.
(Formerly: Acts 1963(ss), c.32, s.116.)
IC 6-3-1-17
Repealed
(Repealed by P.L.35-1990, SEC.80.)
IC 6-3-1-18
Repealed
(Repealed by P.L.1-1991, SEC.51.)
IC 6-3-1-19
"Partnership" and "partner" defined
Sec. 19. (a) The term "partnership" includes a syndicate, group,
pool, joint venture, or other unincorporated organization through or
by means of which any business, financial operation, or venture is
carried on, and which is not, within the meaning of this chapter, a
corporation or a trust or an estate. The term also includes a limited
liability company that is treated as a partnership for federal income
tax purposes.
(b) The term "partner" means a member of a partnership.
(Formerly: Acts 1963(ss), c.32, s.119; Acts 1965, c.233, s.6.) As
amended by P.L.2-1988, SEC.6; P.L.8-1993, SEC.83; P.L.1-1994,
SEC.27.
IC 6-3-1-19.5
Repealed
(Repealed by P.L.47-1984, SEC.7(a).)
IC 6-3-1-20
"Business income" defined
Sec. 20. The term "business income" means income arising from
transactions and activity in the regular course of the taxpayer's trade
or business and includes income from tangible and intangible
property if the acquisition, management, and disposition of the
property constitutes integral parts of the taxpayer's regular trade or
business operations.
(Formerly: Acts 1963(ss), c.32, s.120; Acts 1965, c.233, s.7.)
IC 6-3-1-21
"Nonbusiness income" defined
Sec. 21. The term "nonbusiness income" means all income other
than business income.
(Formerly: Acts 1963(ss), c.32, s.121; Acts 1965, c.233, s.8.)
IC 6-3-1-22
"Commercial domicile" defined
Sec. 22. The term "commercial domicile" means the principal
place from which the trade or business of the taxpayer is directed or
managed.
(Formerly: Acts 1963(ss), c.32, s.122; Acts 1965, c.233, s.9.)
IC 6-3-1-23
"Compensation" defined
Sec. 23. The term "compensation" means wages, salaries,
commissions and any other form of remuneration paid to employees
for personal services.
(Formerly: Acts 1963(ss), c.32, s.123; Acts 1965, c.233, s.10.)
IC 6-3-1-24
"Sales" defined
Sec. 24. The term "sales" means all gross receipts of the taxpayer
not allocated under IC 6-3-2-2(g) through IC 6-3-2-2(k), other than
compensation (as defined in section 23 of this chapter).
(Formerly: Acts 1963(ss), c.32, s.124; Acts 1965, c.233, s.11.) As
amended by P.L.2-1988, SEC.7.
IC 6-3-1-25
"State" defined
Sec. 25. The term "state" means any state of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, any
territory or possession of the United States, and any foreign country
or political subdivision thereof.
(Formerly: Acts 1963(ss), c.32, s.125; Acts 1965, c.233, s.12.)
IC 6-3-1-26
"Foreign corporation" defined
Sec. 26. "Foreign corporation" means a foreign corporation as
defined in Section 7701 of the Internal Revenue Code.
As added by P.L.75-1985, SEC.1.
IC 6-3-1-27
"United States" defined
Sec. 27. "United States", when used in a geographical sense,
means the United States as defined in Section 7701 of the Internal
Revenue Code.
As added by P.L.75-1985, SEC.2.
IC 6-3-1-28
"Combined income tax return" defined
Sec. 28. "Combined income tax return" means any income tax
return on which one (1) or more taxpayers report income, deductions,
and credits on a combined basis with one (1) or more other entities.
As added by P.L.75-1985, SEC.3.
IC 6-3-1-29
"Eligible individual" defined
Sec. 29. As used in this chapter, "eligible individual" means:
(1) a person who was systematically persecuted for racial or
religious reasons by Nazi Germany or any other Axis regime;
or
(2) an heir of a person described in subdivision (1).
As added by P.L.128-1999, SEC.2.
IC 6-3-1-30
"Holocaust victim's settlement payment" defined
Sec. 30. As used in this chapter, "Holocaust victim's settlement
payment" means a payment received:
(1) as a result of the settlement of the action entitled "In re
Holocaust Victims' Asset Litigation", (E.D. NY) C.A. No.
96-4849;
(2) under the German Act Regulating Unresolved Property
Claims;
(3) under any other foreign law providing payments for
Holocaust claims; or
(4) as a result of the settlement of any other Holocaust claim,
including:
(A) insurance claims;
(B) claims relating to looted art;
(C) claims relating to looted financial assets; or
(D) claims relating to slave labor wages.
As added by P.L.128-1999, SEC.3.
IC 6-3-1-31
"Victim of the September 11 terrorist attack" defined
Sec. 31. As used in this article, "victim of the September 11
terrorist attack" means an individual who:
(1) died from the crash (including those on the airplane and
those on the ground) of any of the four (4) commercial jet
airplanes that were hijacked in the United States on September
11, 2001; or
(2) is a child or spouse of an individual described in subdivision
(1).
As added by P.L.8-2002, SEC.1.
IC 6-3-1-32
"September 11 terrorist attack settlement payment" defined
Sec. 32. As used in this article, "September 11 terroris